Bramo Courier Services Has Set Up an Extranet Website to Enable

question 8

Multiple Choice

Bramo Courier Services has set up an extranet website to enable its customers to place orders directly. It has also set up an intranet website to enable its employees to convey order and shipping information to the relevant departments within the firm. However, to ensure effective and smooth exchange of information, Bramo Courier Services has to pay $100 million annually for Internet access. In this scenario, the cost that Bramo Courier Services incurs is an example of _____.

• A) acquisition cost
• B) processing cost
• C) communication cost
• D) retrieval cost

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Definitions:

Consumer Surplus

The difference in the total value consumers are prepared to pay for a product or service compared to their actual payments.

Spanish Producers

Are businesses or individuals in Spain engaged in the creation or manufacturing of goods and services.

Spanish Consumers

Individuals or households in Spain that purchase goods and services for personal use.

Total Surplus

The combination of consumer and producer surplus in a market, symbolizing the overall net advantage to society derived from the creation and usage of a product or service.